Money News
4th August 2008
One in five Northern Rock customers 'facing negative equity'
Around 20 per cent of Northern Rock customers are to be confronted with negative equity in the next 12 months, it has been reported.
According to the Daily Telegraph, around five per cent of the bank's mortgage customers are currently facing a larger mortgage debt than the value of their home.
However, as a result of slumping house prices, this is set to hit another 15 per cent of its customer base, with those who took out high loan to value deals with the lender set to be hit hardest.
This is due in part to the fact that this group are finding it hard to remortgage with another provider due to the fact that they have not built up significant equity in their properties.
Details of how the lender's mortgage book has deteriorated are set to be released in its latest trading report which will be unveiled next week.
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